CDG Petchem Limited is currently executing one of the most significant strategic pivots in the Indian small-cap space. Historically a player in the textiles and petrochemicals sectors, the company is undergoing a total structural transformation into a specialized **Automotive Logistics** powerhouse. This transition is driven by a change in management control to the **Jujhar Group**, a successful open offer, and the strategic acquisition of **Jujhar Logistic & Travels Limited**. --- ### **The Strategic Pivot: From Polymers to Portals** The company has formally shifted its core identity, moving away from legacy manufacturing to focus on high-growth transportation services. * **Corporate Rebranding:** A special resolution was passed in **March 2026** to change the company name to **Jujhar Logistics Limited**. * **Operational Reclassification:** As of **December 2025**, logistics activities accounted for **57.64%** of total operational income. The company has formally altered its **Main Objects** in the Memorandum of Association (MOA) to include general carriers, forwarding agents, and transporters of goods/passengers by air, land, and sea. * **Geographic Realignment:** The registered office is being shifted from **Telangana** to **Punjab** to align with the new management’s operational hub. * **Divestment of Legacy Assets:** * The **PE Wax business** has been declared non-operative due to geopolitical disruptions (Russia-Ukraine conflict). * The **Polymer Trading segment** is being phased out due to low productivity. * The **100% subsidiary, Morbido Merchandise Private Limited**, was divested on **July 5, 2025**. * Unproductive land in **Karnataka** and **Hyderabad** is being sold to retire debt and fund logistics expansion. --- ### **Core Business: Specialized Automotive Logistics** Operating primarily through its **51% subsidiary, Jujhar Logistic & Travels Limited** (acquired **November 18, 2025**), the company serves as a critical link in the supply chain for India’s leading Original Equipment Manufacturers (OEMs). #### **Service Offerings & Technology** * **Vehicle Transportation:** Specialized transport for a range of vehicles, from **entry-level hatchbacks to premium SUVs**. * **End-to-End Solutions:** Services span the entire journey from **OEM plant dispatch to dealership gates**. * **Tech-Enabled Fleet:** The fleet is **GPS-powered** with real-time telematics and monitored via advanced management systems to ensure **damage-free** and **on-time delivery**. #### **Key Client Portfolio** The company maintains deep relationships with the giants of the Indian automotive industry: * **Maruti Suzuki, Mahindra & Mahindra, Tata Motors, Kia, Hyundai, Skoda, Toyota, and Land Rover.** #### **Strategic Terminal Contracts (Dec 2025)** The company recently secured two major last-mile transportation mandates: * **Ludhiana (Ahmedgarh) Terminal:** Serving Punjab, Himachal Pradesh, and Jammu & Kashmir. * **Ahmedabad (Sanand) Terminal:** Supporting the massive automotive manufacturing hub in Gujarat. --- ### **Operational Performance & Scalability** The logistics segment has demonstrated immediate scalability under the new management, achieving record volumes in **Q3 FY26**. | Period | Total Vehicle Deliveries (Units) | QoQ Growth (%) | YoY Growth (%) | | :--- | :--- | :--- | :--- | | **Q3 FY26 (Oct-Dec 2025)** | **42,068** | **35.62%** | **30.12%** | | **Q2 FY26 (Jul-Sep 2025)** | **31,018** | - | - | | **Q3 FY25 (Oct-Dec 2024)** | **32,330** | - | - | --- ### **Legacy Portfolio: Chemicals & Technical Textiles** While the company is pivoting to logistics, it retains a portfolio of industrial products and trading activities: | Category | Key Products | HS Code / Spec | | :--- | :--- | :--- | | **Resins & Chemicals** | PVC Suspension Resin, Polyvinyl Alcohol 0599, Aqupol | **39041020 / 39053000** | | **Construction** | Micro Silica Dubuild D 850 (Concrete Admixture) | **D 850** | | **Technical Textiles** | Knitting Mesh, Tarpaulins, Industrial Tents | - | | **Packaging/Yarn** | PP Woven Sacks, PP Fibrillated Yarn, Industrial Cord | - | --- ### **Financial Transformation & Capital Structure** To facilitate this massive shift, the company significantly expanded its capital base in **2025**, raising approximately **₹28.38 Crore**. * **Capital Expansion:** Authorized Share Capital increased from **₹5 Crore** to **₹10 Crore**. * **Preferential Allotment:** Issued **61,58,000 shares** and **7,64,500 warrants** at **₹41 per unit** (including a **₹31 premium**). * **Debt Reduction:** Total borrowings were aggressively reduced from **₹865.62 lakhs** in FY24 to just **₹24.26 lakhs** by March 31, 2025. * **Subsidiary Performance:** While the parent company saw declining revenues in its legacy years (FY23-FY25), the new subsidiary, **Jujhar Logistic**, reported robust standalone figures for **9M FY26**: * **Revenue:** **₹159.88 Cr** * **EBITDA:** **₹33.14 Cr** * **PAT:** **₹20.39 Cr** --- ### **Leadership & Governance** The management was reconstituted following the **April 2025** Share Purchase Agreement with **Jujhar Constructions and Travels Private Limited**. * **Promoter Group:** The **Mundi Family** (Jujhar Group) now leads the company. * **Board Appointments:** **Arshdeep Singh Mundi** and **Akashdeep Singh Mundi** joined the Board; **Jagjit Singh Rai** was appointed Whole Time Director for a **5-year** term. * **Reclassification:** The former promoters (Dugar family) have been moved to the **Public Category** as of **March 2026**. --- ### **Risk Framework & Mitigation** | Risk Category | Description | Mitigation Strategy | | :--- | :--- | :--- | | **Regulatory** | Public shareholding may fall below the **25% MPS** threshold post-offer. | Acquirer has committed to restoring compliance within legal timelines. | | **Market** | Volatility in oil prices affecting raw materials and fuel costs. | Transitioning to logistics (service-based) to reduce direct chemical exposure. | | **Credit** | Risks associated with trade receivables and land advances. | Mandatory advances before property transfer; strict credit appraisals. | | **Operational** | Execution of fixed-price contracts within budget. | Real-time GPS monitoring and advanced fleet management to optimize costs. | | **Liquidity** | Managing working capital cycles during high growth. | Periodic board reviews of gearing ratios and cash reserves. | ### **Investment Outlook** CDG Petchem (Jujhar Logistics) represents a "turnaround" play where a legacy, loss-making chemical entity has been infused with a high-performing, cash-flow-positive logistics business. The primary value driver for investors will be the successful integration of the **Jujhar Logistic** subsidiary and the company's ability to leverage its new promoter's relationships with major Indian automotive OEMs to capture a larger share of the vehicle transport market.